Former Goldman Sachs CEO during 2008 crash says markets are ‘due’ for a crisis: ‘It doesn’t matter that you can’t see where it’s coming from’

Core Viewpoint - Lloyd Blankfein, former CEO of Goldman Sachs, expresses concerns about potential economic crises due to narrow credit spreads and the rise of private credit, indicating a sense of foreboding in financial markets [1][5]. Financial Market Risks - Blankfein highlights the risks associated with narrow credit spreads, which are at their tightest in about 20 years, suggesting that this may lead to mispricing of risks in an uncertain economic environment [6]. - The private credit market has grown to a $1.7 trillion industry, driven by higher interest rates that offer better yields for investors, but this growth raises concerns about hidden risks and liquidity issues [6][7]. Economic Outlook - Blankfein warns that historical patterns suggest a "crisis of the century" occurs every four to five years, indicating that the market may be due for another unexpected downturn [3]. - Despite these concerns, Blankfein is currently fully invested in equities, anticipating that the Federal Reserve will lower rates, which could support a bull market [3][4]. Diverging Economic Predictions - Wall Street analysts are divided on the economic outlook, with UBS predicting a 93% risk of recession, while Deutsche Bank remains optimistic, raising its year-end S&P 500 target from 6,550 to 7,000 [4].